Investor Presentation October 2013
COMPANY PROFILE 2 2
Who we are Emak S.p.A. Headquarter: Bagnolo in Piano, Reggio Emilia, Italy Emak is one of the main global players in the production and distribution of machines, components and accessories for gardening, agriculture, forestry and industry such as chainsaws, brushcutters, lawnmowers, garden tractors, motor hoes, power cutters, high pressure pumps and pressure washers. 3
Our history 1972 1978 Establishment of Oleo-Mac 1997 Establishment of Comag, production plant in southern Italy 1998 Listing on the Milan Stock Exchange [STAR segment] 1998 Establishment of the 5 European subsidiaries 2004 Establishment of Emak Jiangmen, production plant in China 2005 Acquisition of Victus, polish subsidiary 2006 Establishment of Emak U.S.A. 2008 2011 2012 Establishment of Efco Acquisition of Bertolini, small agriculture machines (Bertolini/Nibbi) Acquisition of Tailong, Chinese cylinders manufacturer Acquisition of Epicentre, ukranian subsidiary Acquisition of Tecomec, Comet, Sabart and Raico Establishment of Emak do Brasil Ltda, brazilian subsidiary 4
Business overview Gardening Agriculture & Forestry Construction & Industry Brushcutters Lawn mowers Garden tractors Blowers Nylon line Chain saws Tillers Transporters Diaphragm pumps Power cutters High pressure washers Piston pumps 40.9% of FY12 total sales 40.9% of FY12 total sales 18.2% of FY12 total sales 5
Brands Gardening Agriculture & Forestry Construction & Industry 6
Global presence Americas 18.6% of FY 2012 total sales Europe 68.8% of FY 2012 total sales Asia, Africa, Oceania 12.6% of FY 2012 total sales 7
Production plants Company Location Output Emak Bagnolo in Piano (RE) Italia Chaisaws, brushcutters, power cutters, cultivators, transporters Comag Pozzilli (IS) Italia Lawnmowers and rotary tillers Emak Tailong Zhuhai Cina Cylinders Emak Jiangmen Jiangmen Cina Chainsaws, bruscutters for price sensitive segment Tecomec Reggio Emilia Italia Accessories for agricultural machinery for spraying and weeding and accessories and components for pressure washers Speed France Arnas Francia Nylon line and heads for brushcutters Speed North America Wooster, Ohio USA Nylon line for brushcutters Speed Line South Africa Pietermaritzburg - Sud Africa Nylon line for brushcutters Ningbo Tecomec Ningbo Cina Production of accessories and components for high pressure washing and chain saws and brushcutters Comet Reggio Emilia Italia Pumps, motor pumps and control units for agriculture and industry and pressure washers for the cleaning sector PTC Genova Italia Systems and technological applications high-pressure water Valley Paynesville - Minnesota Usa Components and accessories for industry and agriculture sectors 8
Emak Worldwide Slide immagine al lavoro 1H 2013 RESULTS 9
Sales by product line /mln on total revenues 80.4 38.6% 83.9 39.6% 34.5 16.5% 35.8 16.9% 93.6 44.9% 92.2 43.5% 208.5 100.0% 211.9 100.0% Agriculture&Forestry: sales penalized by the late start of the season. Construction&Industry: sales influenced by the slowdown in demand during the second quarter Gardening: higher sales than the same period of last year due to the good performance achieved in the second quarter of the year. 10
Sales by geographic area /mln on total revenues 150.5 72.2% 145.6 68.7% 36.6 17.6% 37.6 17.7% 21.4 10.2% 28.7 13.6% 208.5 100.0% 211.9 100.0% Europe: good performance in the last months of the period. Sales on the Italian market have benefited from the commercial initiatives undertaken by the Group from the beginning of the year. Americas: good results in Latin America Asia, Africa and Oceania: the decrease is mostly due to the lower shipments to Turkey. 11
EBITDA /m Positive product mix and good results from materials and operating costs optimization compensated lower sales and a slightly higher salaries due to use of temporary workers for production peaks EBITDA margin from 11% (12.4% adj) to 12.9% 12
/mln 1H 2013 1H 2012 % FY 2012 Sales 208.5 211.9-1.6% 354.8 EBITDA 26.9 23.3 15.4% 28.8 % on revenues 12.9% 11.0% 8,1% EBITDA ADJ 26.9 26.2* 2.9% 31.7* % on revenues 12.9% 12.4% 8.9% EBIT 21.2 17.3 22.5% 16.6 % on revenues 10.1% 8.1% 4.7% EBT 19.4 14.8 31.0% 12.0 % on revenues 9.3% 7.0% 3.4% Net profit 12.9 9.4 37.2% 8.6 % on revenues 6.2% 4.4% 2.4% Avg. n. of employees 1,733 1,731 1,681 Income statement * Adjusted for non recurring items related to: M&A amounting to 0.3 mln for FY 2012 and 0.2 mln for 1H 2012; the reversal of intercompany margins resulting from enlargement of the scope of consolidation amounting to 2.6 mln for FY 2012 and 2.6 mln for first 1H 2012. 13
Consolidated assets and liabilities /mln 30.06.2013 31.12.2012 30.06.2012 Net fixed assets 87.3 89.0 90.4 Net working capital 162.9 155.9 163.5 Net capital employed 250.2 244.9 253.9 Net equity 154.7 145.0 147.1 Net financial debt 95.5 99.9 106.8 Debt/Equity 0.62 0.69 0.73 The trend in net working capital in the first half is mainly due to the sales seasonality. 14
Net financial position /mln 15
Financial debt maturity As of 30/09/2013 16
FY 2013 guidance /mln FY 2012 FY 2013e Sales 354.8 355-360 EBITDA 28.8 36-38 % on sales 8.1% 10%-11% Net debt 99.9 80-85 Sales influenced by late start of the season in the beginning of the year Partial recovery in the second quarter Good results from cost optimization policy For the second part of the year estimated higher sales than the same period of last year. 17
Appendix
Income statement FY 2012 /mln 1H 2013 1H 2012 354.8 Sales 208.5 211.9 3.5 Other operating incomes 0.9 1.2 (8.4) Change in inventories (3.9) (7.5) (193.0) Raw and consumable materials and goods (109.7) (113.4) (61.2) Salaries and employee benefits (33.0) (32.6) (66.8) Other operating costs (35.9) (36.4) 28.8 EBITDA 26.9 23.3 (12.2) Amortization, depreciation and impairment losses (5.8) (6.1) 16.6 EBIT 21.2 17.3 0.9 Financial income 0.6 0.2 (5.1) Financial expenses (2.4) (2.5) (0.4) Exchange gains and losses 0.0 (0.1) 12.1 EBT 19.4 14.8 (3.4) Income taxes (6.5) (5.4) 8.6 Net profit 12.9 9.4 19
Balance sheet - Assets 31.12.2012 /mln 30.06.2013 30.06.2012 Non-current assets 59.2 Property, plant and equipment 57.2 61.4 4.8 Intangible assets other than goodwill 5.0 5.2 30.8 Goodwill 30.6 31.2 0.2 Equity investments 0.2 0.3 7.5 Deferred tax assets 7.3 7.8 0.3 Other non current financial assets 0.2 0.1 2.5 Other receivables 2.5 0.9 105.4 Total 103.1 106.9 Current assets 121.0 Inventories 116.9 123.2 102.8 Trade and other receivables 127.9 129.3 6.0 Current tax assets 4.3 2.4 0.0 Other financial assets 0.0 0.0 0.1 Derivative financial instruments 0.1 0.1 16.2 Cash and cash equivalents 21.2 20.0 246.1 Total 270.4 274.9 351.5 TOTAL ASSETS 373.6 381.8 20
Balance sheet Equity and Liabilities 31.12.2012 /000 30.06.2013 30.06.2012 Capital and reserves 143.2 Total Group 152.8 145.2 1.8 Minority interests 1.9 1.9 145.0 Total equity 154.7 147.1 Non-current liabilities 34.3 Loans and borrowings 53.3 46.0 0.0 Derivative financial instruments 0.0 0.1 4.2 Deferred tax liabilities 4.0 4.3 9.1 Provisions for employee benefits 8.9 9.0 1.7 Provisions 1.7 1.8 1.2 Other non-current liabilities 1.1 1.3 50.4 Total 69.0 62.5 Current liabilities 69.1 Trade and other payables 79.9 84.0 3.5 Current tax liabilities 5.1 4.9 80.8 Loans and borrowings 62.8 79.6 1.3 Derivative financial instruments 0.9 1.3 1.3 Provisions 1.3 2.5 156.0 Total 149.9 172.3 351.5 TOTAL EQUITY AND LIABILITIES 373.6 381.8 21
Net debt and equity /mln 22
Emak S.p.A Via E. Fermi, 4 42011 Bagnolo in Piano RE [Italy] info@emak.it www.emak.it Speakers Mr. Fausto Bellamico Chairman and CEO Mr. Aimone Burani Deputy Chairman and CFO Mr. Andrea La Fata Investor Relator alafata@emak.it 0039-0522.956.332